Answer:
C.
Explanation:
Convergence property strictly implies that on the delivery day the observed futures price equals the observed spot price. In the markets these two prices must converge, If this does not happen, then this creates an arbitrage opportunity which ultimately brings with it the possibility for a risk-free profit, which is the act of buying an asset and immediately selling the same asset for a higher price.
Answer:
The correct answer is 4. If current market interest rates rise, the value of outstanding bonds will fall.
Explanation:
The economics of financial investment of bonds indicates that if the value of the interest rate rises, said rise implies a virtual increase in the risk of the bond, that is, it pays more interest because it is more risky to invest in it.
Therefore, in the event of an interest increase, the price of the bonds will fall. On the contrary, a lower interest rate infers a greater security of the financial asset, with which the lower the interest rate, the higher the value of the bond.
Answer: Proxy (C)
Explanation:
Voting by proxy is a form of voting where a member of a decision making body delegates their voting power to a representative, so as to enable voting in their absence.
The representative can be another member of the body, or an external person. The person designated is referred to as a proxy while the person designating the indivisual who helps him or her vote is called a principal.
Debit Rent Expense is $8,000 whereas the credit Prepaid Rent is $8,000 of the above given accounting equation .
What is Deferred revenue ?
Money received for goods or services but not yet earned is referred to in accrual accounting as deferred income (also known as deferred revenue, unearned revenue, or unearned income). The revenue recognition principle states that it is recorded as a liability up to the time of delivery, at which point it is changed to revenue.
For instance, a business might get an annual software license payment on January 1 from a client who paid it in full. The business' fiscal year, nevertheless, concludes on May 31. Therefore, the business adopting accrual accounting only includes the fee in its revenues for the fiscal year it received the money, or five months' worth (5/12), of the fee. On the balance sheet for that year, the remaining amount is added to deferred income (liability).
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Answer:
Put forward objectives that you need to achieve. To be roused to really accomplish your objectives, they should be founded on the data that you considered during the dynamic interaction. Stage 2: Consider your objectives mindfully to guarantee that they don't negate one another.